Oct 17, 2012

Mayne: the real story behind the Cochlear pay revolt

A shareholder revolt against the issuing of options to Cochlear's CEO elicited some interesting information at the company's AGM yesterday.

Stephen Mayne — Journalist and Founder

Stephen Mayne

Journalist and Founder

There is no greater darling stock on the ASX than Cochlear, the fabulous Australian success story which has brought hearing to more than 250,000 profoundly deaf people globally through the bionic ear technology which was developed by Professor Graeme Clark at Melbourne University in the 1970s.

And for investors who paid just $2.50 a share when the panic-stricken Pacific Dunlop floated the business in 1994, Cochlear has been a magnificent investment, jumping another 50c to $72.32 in morning trade today.

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One thought on “Mayne: the real story behind the Cochlear pay revolt

  1. jennatilz mckrackin

    It seems like as much as people try to design executive pay, there are always loopholes and circumstances which can circumvent the intentions. Perhaps all contracts should include an overriding fair and reasonable person test. Would an independent person consider to the granting of options as reasonable given the circumstances?

    The other point being that although I am a chartered accountant and I understand the pressures and rules for auditors, it seems as though so many companies are getting away with huge holes in their financial statements and I wonder how effective the audits are.

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